Mbo - Doc Download

Hi,
This is the third time that I am posting this question!!!!!!! Can anybody please help me out with MBO? I want to implement this as a performance measurement tool in the software co in which right now I m working. There are around 60 employees.
Please give a detailed step by step approach.
Thanks and regards,
Ayona

Hi,

MBO (or management by objectives) is a technique credited to management guru Peter Drucker, to describe a method of performance management that is based on the setting of clear and measurable objectives, and the use of those objectives to evaluate and review performance. When done correctly, MBO is probably the best, and fairest way to plan for and create effectively performing employees, although, of course, if the implementation is poor, the outcomes will be poor.

Here's a formal definition:

Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives.

The following link would be of some help to you:

http://www.performanceassociates.co....ppraisals.html

Regards,

Manju :)

Dear Ayona,
• Management by objectives is a top down approach. Create VMV (Vision, Mission, Values) of the organization and make it to fall till departmental VMV.
• Based on the VMV set organizational goals, and make the same drop down till department level.
• From departmental level, take it further down the organization and make it individual specific. There may be 5 - 7 such goals which are now the KRA's for the employee.
• Each KRA may have a group of sub goals, fulfillment of which will mean accomplishment of the KRA.
• Based on the business priorities provide weightage to these KRA's.
• Conduct your appraisal evaluating these KRA's.
Note: Be sure that the collective accomplishment of departmental and functional goals leads to organizational goal achievement.

Hi,
We are following a very similar kind of model in our organisation with a strength of 500 employees.Please find attached some details which I could pull out for your ready reference.
Cheers
Arundhati

Dear all,
Japanese renamed MBO as "Hoshin Kanri" after making a key change. The chage is "Shift from just result focus to Process and Result Focus". Hoshin Kanri means Management By Direction OR MFO ( Management for Objectives).
In Hoshin Planning or MFO, management not only identifies goals but also identify means and process of reaching the goal. Then both Boss and subordinates agrees on Goal & means (it is called catch ball process). The advantage of MFO is ownership of the goal.
Now decide which one you want to adopt MBO or MFO ?
Best Regards
Ramesh

Hi Ramesh,
Excellent contribution, could you just let me know how I would go about implementing this in my organisation?
Could you just give me a detailed step by step approach?
This is a software co, comprising of 60 people.
Thanks and regards,
Ayona

Hi Ayona,
Please go through the attached presentation. PDCA ( Plan,Do Check Act) cycle is used for Hoshin Planning (MFO) also a tool called X matrix is used for deployment.
Hope this helps. Please let me know incase you need any clarification
Best Regards
Ramesh

Hi Ramesh,
Thanks a lot for the excellent conrtibution.
I just want to let you know the procedure that I have decided to follow for implementation of MBO:
1. Interaction with the directors to know the vision, goals of the company (annual), and what is the procedure that should be followed to achieve the same
2. Interaction with the departmental heads to for aligning the vision of the co with the departmental goals and the procedure to follow that
3. Deciding on the performance criteria for designing the MBO..
Please do let me know if the procedure that I have decided to follow is right or wrong.......
It would be great if you could just let me know a detailed step by step approach of how to go about this.
Thanks and regards,
AYona

Hi Ayona,

Steps are already there in my presentation. You have to convert them in to micro level steps. MBO or MFO is a top down approach. I hope your organization is already have Mission ,Vision , Streategies and Annual objectives (It may not be in a structured form but hope your org have a business plan where the above points addressed). Below are the typical steps

( You have to start this process atleast 2 months before the commencement of new financial Year)

1. Reviewing previous year plan V/s achievements

2. Reviewing Vision and Strategic Objectives ( Thru Brain storming. Some companies do it off-site for a day or two)

3. Finalising key goals for the year ( 3 to 4 Goals)

4. Deployment of these goals departmentwise ( ensure that no conflicts between two goals)

5. Ask Dept heads to identify means of achieving their goals

6. Both CEO & Dept head agree on all the goals,Targets,means and time frame and signoff policy document ( Ensure the means of achiving goals are proactive not reactive. Also ensure goals are SMART means - Specific,Measurable,Aggressive but achievable, Relevant and Time bound)

7. Reporting formats (templates) to be finalised

8. Review meetings to be scheduled with proper agenda and frequency

9. Define System (formats) for Root cause analysis with Corrective actions where goals not achieved and sustainance/Improvement actions where goals achieved/exceeded.

10. Periodically (atleast once in a quarter) review the goals inline with changing business environment and revise it if required.

Note : a) You can use this process (Step no 6) to identify means of achieving your goals (Example: Six Sigma, Lean , BPR Etc...)

b) Link your performance appraisal and Training need identification to the goals.

c) You can use BSC ( Balanced Score card) for identifying the key goals and monitoring.

If you are doing it for the first time, it is lot of work and depending on the maturity level, it will take 2-3 years to see significant results. So dont get frustrated. go ahead with patience.

For more information refer any Business excellence books OR Balanced score Card Book by Kaplan

Also you can go for some Business excellence awards /SEI CMMI where all the above becomes requirements and make your journey easy

Wish you all the best,

Ramesh

Hi Anoya,
Please refer the attached presentation. For more information on BSC you can search in this website
Ramesh